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By Rod Nickel
WINNIPEG, Manitoba, Dec 2 (Reuters) – Chicago wheat extended losses on Friday to a fresh three-month low as modest weekly U.S. exports kept traders‘ focus on competition from cheaper Black Sea supplies.
Corn also fell, while soybeans rebounded, consolidating after a selloff in the previous session over disappointing U.S. biofuels levels.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 1.9% at $7.68-1/2 a bushel by 9:58 a.m. CST (1558 GMT), after earlier falling to its lowest since Aug. 19.
A record Russian harvest and a grain export channel from Ukraine have increased export competition for U.S. supplies.
“We’re worried about Ukraine and Russia. They keep flooding the world market with wheat and their prices are far cheaper than ours,” said Jack Scoville, vice-president of Price Futures Group.
Wheat prices fell even as Canada’s all-wheat crop turned out smaller than expected due to dry conditions, Statistics Canada reported.
French crops, however, are in good shape entering the winter with an estimated 98% of soft wheat in good or excellent condition in the week to Nov. 28.
Corn Cv1 dropped 1.6% to $6.50-1/4 a bushel and also faces concerns about faltering export demand, Scoville said.
Current sales to what were U.S. corn’s No. 2 through No. 5 destinations last year are down 71% on the year.
CBOT soybeans Sv1 rose 0.3% to $14.34-1/4 a bushel, after finding technical support just above Thursday’s low of $14.25-1/4.
Soybeans and wider commodity markets had been underpinned in recent sessions by signs China was softening COVID-19 rules after rare public protests in the world’s second-largest economy.
(Reporting by Rod Nickel in Winnipeg, Mark Weinraub in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Marguerita Choy)
((rod.nickel@tr.com @RodNickel_Rtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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